Telecom Infrastructure Provider Company RailTel’s shares rose more than 20 percent on Monday. RailTel announced that it has received an order of Rs 105.82 crore from the Ministry of Railways. Since then, shares of companies have registered an increase. RailTel’s stock rose 19.97 percent on Monday and its price rose to Rs 121.40. On Monday, 58.66 lakh shares of RailTel were bought and sold on BSE. The company’s market capitalization increased to Rs 4,660 crore.
Share prices increase after large order from railway ministry
At the same time, its stock rose 19.98 percent on NSE on Monday and reached Rs 145.60. Earlier, it had closed at Rs 121.35. RailTel’s capitalization at NSE increased to Rs 4,635 crore. On Monday, 4.25 crore shares of RailTel were traded on the NSE. The company says that after the order received by the Ministry of Railways, its shares saw a rise.
Sudden rise after listing at nominal premium
RailTel Corporation shares were listed on the stock market on February 26 at a premium of just 16 per cent. Its IPO issue was priced at Rs 94 but it was listed at 109. On Monday, it had closed at 14,750, an increase of 900 points. The third quarter GDP figures gave this momentum to the market. RailTel’s IPO received 42.39 times subscription on the last day of subscription i.e. February 18 The IPO received a very good bid but it was listed at a 16% premium to the issue price in the stock market. Due to being listed at such a low premium, there was disappointment among its investors. But now the increase in its prices has given them a fillip.